One of the possible Setts in the DIGG launch parameters topic is the Rebalancer Sett:
- Rebalancer Sett (sells on positive rebases, buys on negative, still being scoped)
The structure of BIP 3 allows for ‘soft’ rebalancing that is done by LPs.
If you do nothing as an LP, over time you accumulate DIGG, WBTC, and LP tokens.
If you’ve been through a long negative rebase phase, you have the ‘bullets’ to affect the price once it goes to the positive rebase realm. And otherwise.
It is not an automated rebalancing, it is rebalancing that is done by choice because it serves LPs’ best interests:
- they get more rewards
- their underlying asset becomes more valuable